Exercise for Final Exam
- _ refers to the amount of money charged for a product or service
- Value
- Cost
- [x] Price
- Wage
- Salary
- _ is the only element in the marketing mix that produces revenue
- [x] Price
- Product
- Place
- Fixed costs
- Variable costs
- Which of the following is true with regard to price?
- Historically, price has had the least perceptible impact on buyer choice.
- Price is the least flexible element in the marketing mix.
- Unlike product features and channel commitments, prices cannot be changed quickly.
- [x] Price is the sum of all the values that customers give up to gain the benefits of having a product.
- Prices only have an indirect impact on a firm's bottom line.
- What sets the ceiling for product prices?
- product manufacturing costs
- sellers' perceptions of the product's value
- [x] customer perceptions of the product's value
- variable costs
- break-even volume
- What sets the floor for product prices?
- consumer perceptions of the product's value
- [x] product costs
- competitors' strategies
- advertising budget
- market competition
- Effective _ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value.
- [x] customer-oriented
- cost-based
- time-based
- competition-oriented
- marketer-oriented
- _ pricing uses buyers' perceptions of value as the key to pricing.
- [x] Customer value-based
- Cost-based
- Time-based
- Markup
- Target return
- Which of the following is true of value-based pricing?
- [x] The targeted value and price drive decisions about what costs can be incurred and the resulting product design.
- Value-based pricing is mostly product driven.
- Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risks.
- The marketer usually designs a product and marketing program and then set the price.
- A company using value-based pricing designs what it considers to be a good product, adds up the costs of making the product, nad set a price that cover costs plus a target profit.
- The perceived value of different product offers can be resasonably assessed by _.
- conducting a SWOT analysis
- conducting a break-even analysis
- [x] conducting surveys and experiments
- collecting data about competitors' offers
- setting a benchmark for product quality
- Underpriced products _.
- [x] produce less revenue than they would if they were priced at the level of perceived value
- sell pooly in the global marketplace
- produce more revenue than they would if they were priced at the level of perceived value
- mostly offer higher value than those with a high markup price
- are characterized by rapidly declining demand
- A market-skimming pricing strategy should NOT be used for a new product when _.
- the product's quality and image support its higher price
- enough buyers want the products at that price
- competitors are unable to enter the market
- [x] competitors can undercut prices easily
- producing a smaller number of goods is feasible
- When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the _ pricing strategy.
- [x] market-skimming
- cost-plus
- market-segmentation
- market-penetration
- competititive
- The term "demand chain" is considered limited because it _.
- advocates a make-and-sell view of the market that relies on a responsive supply network
- suggests that planning starts with raw materials, productive inputs, and factory capacity
- [x] takes a step-by-step, linear view of purchase-production-consumption activities
- ignores the evolution of the global marketplace
- overlooks the needs of target customers
- A _ is made up of the company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system.
- [x] value delivery network
- horizontal channel
- consumer base
- product delivery network
- product line
- A _ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
- product line
- product delivery network
- [x] marketing channel
- consumer base
- resource bank
- Which of the following is most likely true of marketing channel decisions?
- [x] They often involve long-term commitments to other firms
- They have minimal influence on the prices of products offered to customers
- They increase the amount of time a company spends connnecting with customers
- The increase the amount of effort a company puts in to distribute goods
- They are easily altered, replaced, or discarded
- _ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities.
- Virtual banks
- [x] Intermediaries
- Price consultants
- Uniform-delivery networks
- Upstream partners
- From the economic system's point of view, the role of _ is to transform the assortments of products made by producers into the assortments wanted by consumers.
- upstream partners
- [x] marketing intermediaries
- third-party logistics
- price consultants
- factory supervisors
- Which of the following is an example of an indirect marketing channel?
- June Bride, which sells bridal gowns via its click-to-order online catalogs
- Farmer Brown, who delivers fresh milk from his diary to customers every morning
- [x] Wine & Dine, which sells its picnie hampers to select novelty stores across the country
- Lifebelt Insurance, which sells life insurance through its door-to-door salespeople
- Rhonda's Rental, which rents cars out to people for the day
- The greater the number of channel levels in a marketing channel, the _.
- less distance between producer and end-consumer
- [x] greater the channel complexity
- less time it takes for products to reach end-consumer
- greater the control producers have over the distribution of their products
- greater the control producers have over the demand of their products
- _ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.
- Ambush marketing
- [x] Shopper marketing
- Bait-and-switch marketing
- Affinity marketing
- Narrowcasting
- _ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.
- Limited-service
- [x] Self-service
- Full-service
- Speciality-service
- Wholesailing
- Today, _ are flourishing due to the increased use of marketing segmentation and market targeting.
- chain stores
- [x] specialty store
- superstores
- discount stores
- off-price stores
- Specialty stores carry _ with ___ within them.
- only convenience products; shallow assortments
- [x] narrow product lines; deep assortments
- narrow product lines; shallow assortments
- wide product lines; shallow assortments
- wide product lines; deep assortments
- A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this communication mix?
- the product mix
- product line filling
- [x] the promotion mix
- the price mix
- horizontal diversification
- Which of the following is one of the five major promotion tools?
- market penetration
- strategic positioning
- product line filling
- market diversification
- [x] direct marketing
- Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorship, events and Web pages?
- sales promotion
- direct marketing
- advertising
- [x] public relations
- horizontal diversification
- Today's consumers do not need to rely on marketer-supplied information about products and services because they can use _ to seek out a wealth of information
- push strategies
- direct marketing
- [x] the Internet
- personal selling
- public relations
- When the advertising objective is to build primary demand for a new product category, _ advertising will most likely be used.
- persuasive
- [x] informative
- comparative
- patronage
- institutional
- Which of the following is an objective of persuasive advertising?
- communicate customer value
- correct false impressions
- describe available services and support
- keep the brand in a customer's mind during off-seasons
- [x] change customer perceptions of product value
The final exam will be 100 questions multiple choices.